Six new funds to encourage innovation in electronics system

To tackle financial challenges faced by start-ups and entrepreneurs in the electronic sector, especially in creation of patents, the government has set up an Electronic Development Fund.PTI | Updated: April 14, 2016, 13:14 IST

NEW DELHI: Government has received a proposal from six more firms for setting up of funds for investment in electronics system design and manufacturing, mainly to encourage innovation in the country.

"Sanction has been issued to four firms. Six are in the pipeline. They will be seeing the light of day very soon," Department of Electronics and IT Secretary Aruna Sharma said at Qualcomm Design in India challenge event.

"These are going to managers of the fund. They will create a daughter fund. They will be getting applications from innovators to seek fund to support their innovation."

To tackle financial challenges faced by start-ups and entrepreneurs in the electronic sector, especially in creation of patents, the government has set up an Electronic Development Fund. This fund is meant to preferably invest in companies through daughter funds with support in place.

The EDF can itself start a daughter fund to invest in an innovation if the project is of strategic importance.

Telecom Secretary J S Deepak, who was present at the event, expressed concern over huge foreign outflows due to lack of Intellectual Property Right (IPR) in India and called for measures to encourage innovation in the country.

"The amount of foreign exchange the country loses as we don't have an IP is huge," Deepak said.

For every line of telecom network, the outflow is about USD 15 towards payment for IPs.

Qualcomm showcased 10 new projects by Indian start-ups that have potential to be patented and can be commercialised.

"We received interest from 400 companies and have short-listed 10 companies. Qualcomm will provide lab and other required support to these companies to convert their ideas into a real product. IPR for the product will be owned by them," Qualcomm India President Sunil Lalvani said.

The 10 firms were given funding of up to USD 10,000 each for the project and the three finalists at the end of challenge will get USD 1 lakh fund support from Qualcomm.

The US-based chip maker has announced USD 150 million fund for investment in Indian start-ups.

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After PSU banks, the government is likely to infuse capital in two chronically ill telecom PSUs BSNL and MTNL, and the Union Cabinet is likely to take a decision on 4G spectrum allocation to them by the third week of the current month after DoT places the note before it for consideration.

At a high-level meeting at the PMO late Tuesday, it was also decided that the two telcos will frame a Voluntary Retirement Scheme (VRS) to reduce their employee strength, which will be followed by a reduction in the retirement age to 58.